Correlation Between KONE Oyj and Partnera Oyj
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By analyzing existing cross correlation between KONE Oyj and Partnera Oyj, you can compare the effects of market volatilities on KONE Oyj and Partnera Oyj and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KONE Oyj with a short position of Partnera Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of KONE Oyj and Partnera Oyj.
Diversification Opportunities for KONE Oyj and Partnera Oyj
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KONE and Partnera is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding KONE Oyj and Partnera Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partnera Oyj and KONE Oyj is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KONE Oyj are associated (or correlated) with Partnera Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partnera Oyj has no effect on the direction of KONE Oyj i.e., KONE Oyj and Partnera Oyj go up and down completely randomly.
Pair Corralation between KONE Oyj and Partnera Oyj
Assuming the 90 days trading horizon KONE Oyj is expected to generate 2.93 times less return on investment than Partnera Oyj. But when comparing it to its historical volatility, KONE Oyj is 2.59 times less risky than Partnera Oyj. It trades about 0.02 of its potential returns per unit of risk. Partnera Oyj is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 70.00 in Partnera Oyj on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Partnera Oyj or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KONE Oyj vs. Partnera Oyj
Performance |
| Timeline |
| KONE Oyj |
| Partnera Oyj |
KONE Oyj and Partnera Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KONE Oyj and Partnera Oyj
The main advantage of trading using opposite KONE Oyj and Partnera Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KONE Oyj position performs unexpectedly, Partnera Oyj can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Partnera Oyj will offset losses from the drop in Partnera Oyj's long position.| KONE Oyj vs. Sampo Oyj A | KONE Oyj vs. Fortum Oyj | KONE Oyj vs. UPM Kymmene Oyj | KONE Oyj vs. Neste Oil Oyj |
| Partnera Oyj vs. Vincit Group Oyj | Partnera Oyj vs. Verkkokauppa Oyj | Partnera Oyj vs. Solteq PLC | Partnera Oyj vs. Tokmanni Group Oyj |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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